press conference 22 june 2016 - h&m...• approx. 425 new stores net planned for 2016 –153 new...
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H & M Hennes & Mauritz AB
PRESS CONFERENCE 22 JUNE 2016 SIX-MONTH REPORT 2016
• KARL-JOHAN PERSSON CEO
• NILS VINGE INVESTOR RELATIONS
• ANN-SOFIE JOHANSSON CREATIVE ADVISOR
• Sales SEK 54,341 million including VAT
– increase of 2% in SEK; +5% in local currencies
• Profit after financial items SEK 7,002 million (8,435)
• Continued substantial long-term investments within IT, online and new brands
• Continued focus to grow through physical stores and e-commerce
– integration between stores and e-commerce
SECOND QUARTER 2016
SALES
53,233
100,024
54,341
104,965
+ 2%
+ 5%
0
25,000
50,000
75,000
100,000
125,000
Q2 Six months
SEK m incl VAT
2015
2016
GROSS PROFIT AND GROSS MARGIN
2015
201627,245 26,980
49,458 49,679
59.4% 57.6%
57.4% 54.9%
0
10,000
20,000
30,000
40,000
50,000
60,000
Gross profit SEK m
Q2 Six months
SELLING AND ADMINISTRATIVE EXPENSES
18,893
36,469
20,028
39,457
+ 6%
+ 8%
0
10,000
20,000
30,000
40,000
50,000
Q2 Six months
SEK m
2015
2016
PROFIT AFTER FINANCIAL ITEMS
8,435
13,158
7,002
10,329- 17%
- 22%
0
5,000
10,000
15,000
20,000
Q2 Six months
SEK m
2015
2016
SALES AND PROFITS SECOND QUARTER
SEK m 2016 2015
Net sales 46,874 45,867Gross profit 26,980 27,245
gross margin, % 57.6 59.4Operating profit 6,952 8,352
operating margin, % 14.8 18.2Net financial items 50 83Profit after financial items 7,002 8,435Tax -1,645 -1,982Profit for the period 5,357 6,453Earnings per share, SEK 3.24 3.90
KEY DATA
SEK m 31 May 2016 31 May 2015
Stock-in-trade 25,339 19,699
Cash flow from current operations 12,566 13,596
Investments 5,633 4,710
Cash and cash equivalents and short-
term investments8,387 10,293
Return on shareholders' equity, % * 39.0 50.3
* rolling twelve months
STOCK-IN-TRADE
19,699
25,339
+ 29%
0
5,000
10,000
15,000
20,000
25,000
30,000
31 May
SEK m
2015
2016
• H&M’s e-commerce to a further 11 markets in 2016
– Ireland, Croatia, Slovenia, Estonia, Latvia, Lithuania, Luxembourg, Japan and Greece opened during spring
– Canada and South Korea to open in autumn
– e-commerce in 34 markets by end of 2016
• Continued fast roll-out of e-commerce planned in 2017
EXPANSION H&M ONLINE
• Approx. 425 new stores net planned for 2016
– 153 new stores net opened in the first half year
– total of 4,077 stores (31 May)
• Three new markets for H&M in 2016
– Puerto Rico opened 9 June, very good reception
– New Zealand and Cyprus to open in autumn
– H&M in a total of 64 markets before end 2016
• For 2017 four to five new H&M markets are planned
– one of which will be Colombia
STORE EXPANSION
• H&M, & Other Stories, COS, Monki, Weekday and Cheap Monday
– several clearly defined fashion brands which complement each other well
• Five new markets planned for COS in 2016
• & Other Stories, Weekday and Monki also expanding in existing and new markets
OUR BRANDS
COS, LONDON
& OTHER STORIES, TURIN
• H&M in designer collaboration with KENZO 2016
– Carol Lim and Humberto Leon, KENZO’s creative directors
• Collections and accessories for women and men
– bold colours and vivid prints
– global influences and traditions are remixed and fused with the energy of the street
• Launching 3 November 2016
– approx. 250 H&M stores and online at hm.com
KENZO x H&M
H & M Hennes & Mauritz AB